Union Commerce Ministry unveiled New Trade Policy to boost India's Export

The Union Government of India on 5 June 2012 announced a new trade policy aimed at achieving 20 per cent increase in exports to 360 billion dollar in the fiscal year 2012-13. India's exports grew by 21 per cent and touched 303.7 billion dollar in 2011-12, while the trade deficit during the same period expanded to 185 billion dollar.

The government also announced to come out with new guidelines to restore Special Economic Zones (SEZ) and Export Oriented Unit (EOU) schemes to further boost the shipments.

As the part of the new trade policy, the Union Commerce Ministry had added seven new markets to the focus market scheme (FMS) and an equal number of new markets to the special FMS. Countries like Algeria, Aruba, Austria, Cambodia, Myanmar, the Netherland Antilles and Ukraine have been added to FMS; while countries including Belize, Chile, El Salvador, Guatemala, Honduras, Morocco and Uruguay have been added to special FMS. The FMS and SFMS scheme will help India to explore new markets and promote the product diversification.

The highlights of the new trade policy are as follows:

•    Government set the export target for 2012-13 at 20 per cent

•    2 per cent interest subsidy scheme extended till March 2013

•    Government to announce new guidelines to promote SEZs

•    Incentives for exports from north-eastern states

•    Shipments from Delhi, Mumbai through post, courier or e-commerce to get export benefits

•    Foreign Trade Policy document to be more user friendly

•    13 shows abroad to promote Brand India

•    Single revolving bank guarantee for different export deals

•    Seven new markets added to Focus Market Scheme

•    Market linked focus product scheme extended till March'13 for apparel export to USA and EU